L3M3 by CIPS Actual Free Exam Q&As

Question 1

What gets measured, gets ...'?

A. Procured B. Lost C. Measured D. Managed

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Correct Answer: D Vote an answer

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Question 2

Which of the following would be unethical? Choose two.

A. To place business with a company in which your sister works, having been instructed in writing to do so by your line manager B. To request quotations from several suppliers if the buyer has already decided where the contract will be awarded C. To request quotations if the buyer has no intention to purchase D. To negotiate with suppliers

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Correct Answer: B,C Vote an answer

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Question 3

Which of the following would not normally be included in a whole life cost calculation?

A. Cost of setting up the tender B. Inventory costs C. Purchase price D. Defective work, which needs to be rectified.

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Correct Answer: A Vote an answer

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Question 4

In which quadrant of a SWOT analysis would the following appear? 'Ageing workforce, strong trade union representation, under-trained procurement department'.

A. S B. T C. O D. W

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Correct Answer: D Vote an answer

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Question 5

The variable cost of a bottle of water is 25 cents. Selling price is $1, and fixed costs are one hundred thousand dollars. How many bottles of water must be sold to reach breakeven point?

A. 13,333 B. 400,000 C. 4 million D. 133,333

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Correct Answer: D Vote an answer

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Question 6

Where all does not go well on a contract and there are significant increased costs of implementation, a contract clause may exist whereby both buyer and contractor share the unanticipated additional costs using a pre-agreed formul a. What is the expression which describes such an arrangement?

A. Penalty clause B. Gainshare C. Rightful share D. Painshare

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Correct Answer: D Vote an answer

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Question 7

A sum of money credited to a buyer by a seller in recognition of a large volume of purchases bought throughout the previous year might be called a:

A. Historic refund B. Vendor debit C. Retrospective rebate D. Retrospective reward

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Correct Answer: C Vote an answer

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Question 8

What is a contract?

A. An agreement between two or more parties which is intended to be enforceable by any means feasible. B. An agreement between two or more parties which is intended to be honoured. C. An agreement between two or more parties which, all other things being equal, is in-tended to be enforceable by law. D. An agreement between two or more parties which is enforceable in law.

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Correct Answer: D Vote an answer

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Question 9

What do we call it when a seller sets a low introductory price to win customers, or to discourage competitors owing to the low margins achievable in the marketplace? Choose one.

A. Cost mark-up pricing B. Competitive pricing C. Penetration pricing D. Promotional pricing

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Correct Answer: C Vote an answer

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Question 10

Which of the following is least likely to be called a 'spot' purchase?

A. Procurement of an ergonomic office chair for a colleague who suffers from regular backache B. Redecoration of the office over the weekend C. A single shipload of grain from Canada D. A three-year office cleaning contract

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Correct Answer: D Vote an answer

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CIPS Contract Administration - L3M3 Exam Practice Test